Rate Rise Concerns 1 in 3 People

As speculation mounts over the prospect of an imminent interest rate rise, a new survey claims that more than one in three homeowners fear they will find it more difficult to afford mortgage payments if the base rate increases.

The 2014 Homeowner Survey by conveyancer Myhomemove and pressure group the HomeOwners Alliance – which has recently been critical of estate agents’ fees and practices – says rate rises will reduce volumes of new buyers.

In detail, the survey says:
5.8 million owners fear a rate rise will make it more difficult to service mortgages;
64 per cent of interest-only mortgage holders say they fear rising interest rates will make it more difficult to afford payments, suggesting they could be most financially stretched group of owners;
among would-be first time buyers, 54 per cent say they fear a rise in interest rates will make it more difficult to purchase;
regionally, homeowners in the east of England are more fearful about a rise in interest rates than anywhere else in the country.
“Interest rates could begin to rise as soon as November. Christmas could be a tough time” warns Doug Crawford, chief executive of Myhomemove.